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Sam Bowden is a lawyer in the town of New Essex, North Carolina. Max Cady is a former client whom Bowden defended 14 years earlier when he was working as a public defender in Atlanta. Cady was tried for the violent rape and battery of a young woman. Bowden, appalled by Cady's crime, buried evidence that might have lightened Cady's sentence or even secured his acquittal. After his release from prison, Cady tracks down Bowden. He studied law in prison and assumed his own defense, unsuccessfully appealing his conviction several times. Cady hints he has learned about Bowden burying the report.

Several incidents involving Cady impact the Bowden family, which consists of Bowden's wife Leigh and their teenage daughter Danielle. The family dog is poisoned. Cady lurks near their property. Bowden attempts to have Cady arrested, but police lieutenant Elgart says there is no evidence of a crime. At a bar, Cady meets Bowden's colleague Lori Davis. At her house, Cady cuffs her hands, breaks her arm, chews skin off of her face and rapes her. Lori refuses to press charges, ashamed of what happened. Bowden hires private investigator Claude Kersek to follow Cady.

Cady approaches Danielle at her school by impersonating her new drama teacher and kisses her. Bowden warns him to leave his family and him alone or suffer the consequences. Cady secretly tapes the conversation with a hidden recorder. Kersek persuades Bowden to hire three men to beat Cady, but as Bowden watches from a hiding place, Cady turns the tide on his attackers and viciously beats them. Cady uses the recording of Bowden's threat and an exaggerated display of his own injuries to file for a restraining order against Bowden. Cady's new lawyer, Lee Heller, files a complaint with the North Carolina State Bar, vowing to have Bowden disbarred.

Kersek reasons that Cady may try to enter the Bowden house during Bowden's appearance at a bar hearing out of town. They fake Bowden's departure and hide in the house, hoping that Cady will break in so that he can be shot in self-defense. Cady kills the Bowden’s housekeeper Graciella and impersonates her to ambush Kersek, strangling him with piano wire and shooting him with his own gun. Bowden, Leigh, and Danielle discover the bodies. Horrified, they flee to their houseboat, which is docked upstate along Cape Fear. Cady follows them by tying himself to the chassis of their car. He attacks the family on the boat, beating and tying up Bowden, and prepares to rape Leigh and Danielle while making Bowden watch. Danielle sprays Cady with lighter fluid while he lights a cigar, engulfing him in flames and causing him to jump off the boat. However, Cady clings to a rope and pulls himself back on board.

As the boat is rocked by a violent thunderstorm, a badly burned Cady confronts Bowden. The storm knocks him off his feet, allowing Bowden to gain the upper hand once the women make it to shore. Bowden uses Cady's handcuffs to shackle Cady to the boat. When the boat hits a rock and is destroyed, the fight continues on shore. A raging tide carries Cady away, and he drowns. Bowden washes the blood from his hands before rejoining Leigh and Danielle.

It was originally developed by Steven Spielberg, who eventually decided it was too violent and traded it to Scorsese to get back Schindler's List, which Scorsese had decided not to make. Spielberg stayed on as a producer, through his Amblin Entertainment, but chose not to be credited personally on the finished film.[2]

Despite having worked with Nolte in New York Stories (1989), Scorsese did not have him in mind to portray Sam Bowden and wanted Harrison Ford to play the part instead. Ford, however, agreed to do the film only if he was going to portray Max Cady. Nolte, who was interested in portraying Bowden, managed to convince Scorsese to cast him for the part. In addition, Drew Barrymore and Reese Witherspoon both auditioned for the part of Danielle Bowden and Spielberg reportedly wanted Bill Murray to portray Cady.[3]

Nick Nolte is taller than Robert De Niro, but for the movie, Nolte lost weight and De Niro developed muscles until De Niro appeared to be the stronger man. De Niro reportedly took his body fat down to 4%.[4] De Niro also paid a doctor $5,000 to grind down his teeth for the role to give the character a more menacing look, later paying $20,000 to have his teeth restored after the film production was over.[5]

The work of Alfred Hitchcock was also influential on the style of Cape Fear. As with the 1962 film version, where director J. Lee Thompson specifically acknowledged Hitchcock's influence, strove to use Hitchcock's style, and had Bernard Hermann write the score, Scorsese made his version in the Hitchcock manner, especially through the use of unusual camera angles, lighting, and editing techniques. Additionally, Scorsese's version has opening credits designed by regular Hitchcock collaborator Saul Bass, and the link to Hitchcock is cemented by the reuse of the original score by Herrmann, albeit reworked by Elmer Bernstein.[6]

The film received generally positive reviews by critics, with praise garnered towards its performances, direction, cinematography and editing. It received a 75% "Certified Fresh" rating on the film aggregator website Rotten Tomatoes based on 48 reviews, with an average score of 7.1/10. The consensus reads, "Smart and stylish, Cape Fear is a gleefully mainstream shocker from Martin Scorsese, with a terrifying Robert De Niro performance."[8] On Metacritic, the film holds a score of 73 out of 100 based on 9 reviews, indicating "generally favorable reviews."[9] Audiences polled by CinemaScore gave the film an average grade of "B+" on an A+ to F scale.[10]

Roger Ebert gave the film three stars, commenting: "Cape Fear is impressive moviemaking, showing Scorsese as a master of a traditional Hollywood genre who is able to mold it to his own themes and obsessions. But as I look at this $35 million movie with big stars, special effects and production values, I wonder whether it represents a good omen from the finest director now at work."[11]

The film was parodied in the 1993 Simpsons episode "Cape Feare", with Sideshow Bob in the role of Cady. They also pay homage to another Robert Mitchum film The Night of the Hunter in which Sideshow Bob's knuckles (scaled down for a cartoon character with one fewer finger on each hand) say "Luv" (Love) and "Hāt" (Hate, with the diacritical mark providing the long vowel).

In 1995, professional wrestler Waylon Mercy made his WWE (then WWF) debut, with his gimmick based on De Niro's portrayal of Max Cady. However, he only lasted a few months with the company due to a buildup of previous injuries, and the character was abandoned. In 2013, WWE debuted Bray Wyatt, another character partly based on De Niro's portrayal.[13]

In the Seinfeld episode "The Red Dot", as Elaine's boyfriend rampages through her office to get revenge on Jerry for making him lose his job, Elaine makes a reference to the film.

Also in the “Seinfeld” episode “The Bookstore”, in a dream after Jerry rats on Uncle Leo for shoplifting in a bookstore, Jerry has a nightmare where Uncle Leo is doing chin ups, working out in prison to get his revenge on Jerry once he finally received his release. A close up, sharing the same scary score of the movie, Uncle Leo is seen with “Jerry” & “Hello” tattooed on each hand. It's a clear reference to Robert De Niro's character in Cape Fear.

In the Rick and Morty episode "Ricksy Business", Lucy (the deranged maid who tries to rape Jerry) is shown clinging to the underside chassis of their car as they drive home, maniacally shouting "Ha, I'm doing like in Cape Fear!"